Answered

Get the answers you need from a community of experts on IDNLearn.com. Our platform offers comprehensive and accurate responses to help you make informed decisions on any topic.

Which of the following relationships between book value and cash received at sale results in a loss on the sale of a long-term depreciable asset?

a. Book value is greater than cash received.
b. The determination of a gain or loss does not involve the book value.
c. Book value is less than cash received.
d. Book value is equal to cash received.

Sagot :

Answer:

a. Book value is greater than cash received.

Explanation:

Book value of an asset is the cost of an asset less accumulated depreciation

Cash received is the price the asset is sold for.

If the asset is sold for less than its book value, it is sold at a loss

If an asset is sold for more than its book value, it is sold at a gain

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.